Experts have identified improvement in payment system laws, digital forensics, creation of an industry wide forensics laboratory, and capacity building as tools to achieve a smooth and speedy prosecution of financial crime to discourage e-fraud.
The Nigeria Interbank Settlement System (NIBSS) disclosed that the electronic payment industry lost N4.810 billion to criminals in the first nine months of 2014.
Besides, figures compiled by the Financial Institutions Training Centre (FITC) showed that banks lost N159 billion to electronic fraud between 2000 and 2013.
A total N1.65 billion e-fraud was committed in 2000, N3.12 billion (2001), N8.20 billion (2002), N5.13 billion (2003), N89.43 billion (2004), N6.76 billion (2005), N2.74 billion (2006), N8.51 billion (2007), N34.50 billion (2008), and N21.72 billion (2009).
E-fraud declined to N14.96 billion in 2010 following the introduction of more secure technology, rose again to hit N24.43 billion in 2011, then declined to N10.06 billion in 2012. The figure was N7.5 billion in the first quarter of 2013 alone.
Against this backdrop, the Electronic Payment Providers Association of Nigeria (E-PPAN) gathered officials from the law enforcement agencies, the judiciary, and the financial industry experts at its fifth annual payment systems and fraud conference on November 4 to brainstorm on how to minimise the crime.
The participants, drawn from 34 organisations, stressed the need for collaborative measures by all stakeholders to ensure that offenders are brought to justice.
They said this will send a signal to those who exploit the anonymity, global reach, speed, and cost effectiveness of the electronic payment system to pursue criminal enterprise with impunity.
They expressed concern that electronic payment fraud is a threat to individuals and corporate organisations and the entire nation, as the cost implication can be measured through economic and social impacts.
“It affects job opportunities and reduces the standard of living. It diminishes national image, affects consumers’ confidence, ruins big brands, and erodes international confidence in the authenticity of our payment systems,” stakeholders lamented.
A communique signed by E-PPAN Executive Secretary, Onajite Regha, said the participants picked holes in the current laws in Nigeria, and warned of the negative effect on criminal justice administration.
“There is need for accelerated passage of comprehensive laws on payment system, e.g. the Payment System Management Bill and other relevant laws that can support the structure of the payment systems.
“The passage of the Evidence Act of 2011 has improved the opportunities for prosecution of criminals. However, the deficiency of expertise in digital forensics within the banking sector impairs adequate evidence to prosecute fraudsters that are apprehended and charged to court,” the communique said.
It sought an industry wide forensics laboratory and capacity building of experts in digital forensics.
The communique urged greater co-operation among financial institutions, telecommunication companies, crime investigators, and prosecutors.
